Deutsche Bank's "very safe" work reductions will be a final change
James von Moltke, CFO of Deutsche Bank AG, speaks during a fourth quarter of a press conference in Frankfurt, Germany, Friday 2. February 2018.
Andreas Arnold | Bloomberg | Getty Images
Deutsche Bank may have undergone a number of strategic assaults over the past few years, but the CFO told CNBC on Sunday that the bank is determined that this new conversion round will be the latest.
"We are very confident that this is the final restructuring of this organization. We look forward to having it behind us and focusing on our core business going forward," James von Moltke told CNBC's Annette Weisbach in Frankfurt.
On Sunday, the German lender announced that it would withdraw from its global stock trading and trading business, reduce its investment bank and slash thousands of jobs as part of a comprehensive restructuring plan to improve profitability.
By 2022, Deutsche will cut 1[ads1]8,000 jobs for a global number of employees of around 74,000 employees. The Bank intends to reduce adjusted costs by quarter to 17 billion over the next few years.
"Job reductions are painful for all of us. Unfortunately, they are a necessary by-product of the reorganization of the organization. Geographically, it is actually relatively wide spread," he said.
"There are plans that have begun for a while, and of course in the conversion or conversion of our investment bank, there will also be significant cuts there and, of course, falls naturally in equity sales and trading in the announcement that we are going to end completely , but also to some extent in the FICC organization (fixed income, commodities and currencies), von Moltke added.
He said that the bank's board has worked hard to set goals that are achievable so that there are no more rounds of work reductions, and the bank can return to profitability.
"Over the past year or so, we have been cautiously trying to set long-term goals that we could turn to deliver on our promises and build from there. It is certainly how we approach this, he said, pointing out that the board was determined on This is the latest restructuring round needed.
The German bank's decision to withdraw on the investment bank comes just two days after the investment bank chief Garth Ritchie declined with "mutual agreement".
Deutsche expects the restructuring plan to cost 7.4 billion euros by the end of 2022. The German bank expects to report a net loss of 2.8 billion in the second quarter of 2019, with results ending on July 25.
Deutsche shares have risen 16% in the past Month, bouncing off an all-time low at the beginning of June after CEO Christian Sewing demanded "tough cuts" at a dubious shareholder meeting. But multi-year decline is evident in a current stock price of 7 euros, as opposed to 112 euros to its pre-crisis peak.
The Tumbling share price has reflected the bank's long run of inheritance scandals, many of which relate to anti-money laundering errors, along with the collapse of merger negotiations with the domestic competitor Commerzbank, which may have eased the pressure to trim or withdraw from the investment bank.
On the question of why investors should look to buy Deutsche shares again, von Moltke said the bank is moving towards a more stable future.
"We reorient the bank away from the more volatile companies towards very stable, predictable businesses, and as investors see both that and our implementation towards our goals, we believe there is a significant reassessment of the company available." [19659002] CNBC's Annette Weisbach contributed to this report.